It’s been fifteen years since the housing market crash of 2008, and Goldman Sachs is predicting that four US cities are likely to experience a similar crash. According to a report from Goldman Sachs, the cities most at risk are Phoenix, Las Vegas, San Francisco, and San Diego.
The report states that these cities have seen an increase in home prices since the last housing crisis due to low mortgage rates and limited supply. However, the report also notes that these cities have experienced a rapid rise in home prices over the past few years. This could be an indication of a potential bubble forming in these markets.
In addition, Goldman Sachs predicts that rising interest rates could put further pressure on these markets. As interest rates rise, it will become more expensive for buyers to purchase homes and this could lead to fewer people buying homes. This could cause home prices to fall as demand decreases and supply increases.
For those living in Phoenix, it may be wise to take caution when considering purchasing a home right now. It’s possible that we may see another housing crisis like we did back in 2008 if things don’t improve soon.
At The Offer Company, we understand how important it is for our clients to make informed decisions when it comes to buying or selling their homes. That’s why we strive to provide them with all the information they need so they can make informed decisions about their real estate investments. Contact us today to learn more about how we can help you.
The Offer Company